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A Building Week

by Richard Hendrix


The Crypto J-Curve

This is another article that attempts to develop a framework for valuing tokens. In this case, the author delineates between a cryptoasset’s price as composed of two forms of value: “current utility value” (CUV) and “discounted expected utility value (DEUV),” the latter of which some prefer to call speculative value. The J-curve property is one that describes an initially high DEUV (speculative value) that declines relative to CUV (functionality a token can actually deliver today) in the short term as overheated investors cool off, only to increase again as the technical fundamentals of a token improve.


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